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SECURITIES AND EXCHANGE COMMISSION

Quarterly Review April-June 2010

A Publication of the SEC

Securities and Exchange Commission Jiban Bima Tower (14th, 15th, 16th & 20th Floor)

10, Dilkusha Commercial Area Dhaka-1000, Bangladesh

Phone: 9568101-2, 9561525 Fax: (88)-02-9563721

Website: http://www.secbd.org E-mail: [email protected]

3

SECURITIES AND EXCHANGE COMMISSION Quarterly Review

April-June 2010

C O N T E N T S

TOPIC PAGE

1. Capital Market News 4

2. Corporate Finance 6 3. Capital Issue 7 4. SEC Surveillance 12 5. Registration 13 6. Mutual Fund and Special Purpose Vehicle 20 7. Supervision and Regulation of Markets and Issuer Companies 20

8. Supervision and Regulation of Intermediaries 24

9. Central Depository 26 10. SEC Enforcement Actions 27 11. Law 28 12. MIS 29 13. Research & Development 30 14. Capital Market Regulatory Reforms and Compliance 31 15. Market Performance 40 16. DSE and CSE Scenario 42 17. Bangladesh Capital Market Summary 43

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CAPITAL MARKET NEWS Securities and Exchange Commission (SEC) Securities and Exchange Commission, the capital market regulator, was established in June 1993 through enactment of the Securities and Exchange Commission Act, 1993. The missions of the Commission are:

• Protecting the interest of investors in securities; • Developing the capital and securities markets; and • Framing of securities rules concerning above.

Major Events & Developments During April-June 2010, major activities of the Securities and Exchange Commission (SEC) are furnished below: Notification on commencement of the record date and AGM of the listed securities issuers: On May 04, 2010 the Commission issued a notification imposing the following conditions namely,a)the record date or commencement of book closure period of the listed security issuers shall be as per requirement percribed in the listing regulations of the stock exchanges. b) Annual General Meeting (AGM) shall be held by the listed security issuers within 45(forty -five) working days from the record date or commencement of book closure date as the case may be. Notification on conversion of private limited company into public limited company: The Commission issued notification on May 05, 2010 for conversion of private limited company into public limited company complying due legal process in any of the cases: a) within six months from the date its existing paid up capital and the further capital it intends to raise exceeds, in total, taka forty crore; or b) within twelve months from the date of publication of the notification in the official gazette, in case its existing paid up capital has already exceeded in total , taka forty crore. The notification also adds that a public limited company including the said converted public limited company, whose paid up capital exceeds taka fifty crore shall compling due legal processs, apply to the Commission for making an issue of capital through public offering to the extent prescribed by the Commission from time to time, i.e within one year from the date of its paid up capital exceeds taka fifty crore, or from the the date of publication of this notification in the official gazette, whichever comes later, if it has already been in commercial operation for three years or more; or within three years of commencement of its commercial operation, if it has not yet commenced its commercial operation. Notification on change of face value and maket lot of listed companies: In a revised notification dated 10 May, 2010 the Commission informed that the Government had accorded concent on refixing face value of securities of listed companies of the Stock Exchanges who were willing to change face value of shares to Tk. 10 and would be able to complete all the necessary

5

formalities in this connection. Therefore, in accordance with the aforesaid government decision the Commission will initiate necessary steps to consider the applications if the interested listed companies apply to the Commission after completing all the necessary formalities. Directive on trading of paper securities: The Commission issued a directive to both the Stock Exchanges on May 31, 2010 instructing that the paper securities under ‘B”category should not be traded in the Stock Exchanges from July 01, 2010 and these securities should be transferred to ‘Z” category on the same day. It also directed that no paper security should be traded in the Stock Exchanges from October 01, 2010. The Commission in a revised directive dated on 01 June, 2010 instructed that, paper securities under “B” category should not be traded in stock exchanges from July 01, 2010 and should be � ransferred to “Z”category. No paper security should be transacted in the exchanges from October 01, 2010. Directive prohibiting loan facilities on non-marginable securities: On June 15, 2010 the Commission directed the Dhaka Stock Exchange Ltd and the Chittagong Stock Exchange Ltd that the stock exchanges should not entertain the equity securities with price earning ratio of above 40(forty) as “marginable securities” under clause (d) of sub-rule (12) of rule 3of the Margin Rules, 1999 and the stock brokers should not provide loan facilities to the said securities until further order effecting from June 20, 2010. On the same day, the Commission also issued another directive to the merchant bankers including the portfolio managers not to provide or disburse any further margin loan or credit facilities to their clients to purchase the equity securities with price earning ratio of above 40(forty) until further order, effecting from June 20, 2010. Notification to amend the Over-the-Counter (OTC) Rules, 2001: The Commission issued notification on June 16, 2010 to amend the Over-the-Counter (OTC) Rules, 2001. It stated that in the aforesaid Rules, clause (h) under sub-rule (1) of rule 2 should be replaced by the new clause (h), namely- “(h)” unlisted security means a security issued or to be issued by a company, but not listed with any stock exchange under the listing regulations. Directive on submission of BAPLC’s membership certificate to the CSE by the listed companies: On April 11, 2010 the Commission issued a directive to the Chittagong Stock Exchange Limited to insert a sub-regulation (3) after sub-regulation (2) in the regulation 20 of the Listing Regulations of the CSE. The directive instructed that all the listed companies must submit certificate of membership of Bangladesh Association of Publicly Listed Companies (BAPLC) to the CSE as the submission had been made mandatory by The Ministry of Commerce dated on August 15, 2005. It also directed the listed companies to submit a renewed certificate to the CSE every year along with the annual report. Investors’ Education Program: SEC conducts investors’ education program twice a month throughout the year at SEC premises to create awareness among the general investors about capital market. During April-June, 2010 eight

6

Invertors’awarness program were organized by SEC, a total of 285 investors participated in the said programs. Senior SEC officials made presentations on different topics related to capital market in the programs and responded to the queries of the participants. In order to enhance the participation of female investors in capital market, SEC has introduced separate investors’ education program for women only. Training program for Authorized Representatives: In order to educate and aware market participants, the Commission, in association with Dhaka Stock Exchange Ltd and Chittagong Stock Exchange Ltd arranged training programs for authorized representatives of the members of Dhaka Stock Exchange Ltd on 21-22 April,2010 25-26 April, 16-17, 20-21, 27-28 June, 2010 at DSE and for authorized representatives of the members of Chittagong Stock Exchange Ltd on 16-17 May,2010 30-31 May,2010 at CSE Dhaka Office where a total of 411 authorized representatives attended. Senior officials of SEC, DSE and CSE conducted aforesaid programs highlighting securities laws, particularly issuance, trading and settlement of securities transaction, securities analysis and portfolio management etc. CORPORATE FINANCE (CF) CFD’s activities for the quarter: April-June, 2010

Sl. No. Particulars Action taken No. of Company

Explanation sought from the companies

19

Referred to Enforcement Department for necessary action against the companies as their clarification regarding auditors’ qualified report and/or Commission’s observations were not satisfactory.

03

Companies referred to SRMIC Department for appropriate action since there was significant doubt about their ability to continue as going concern.

03

01. Qualified audit report and/or CFD’s observation on the audited financial statements.

Explanation sought from the statutory auditors.

03

Time extended. 11 02. Time extension for submission of audited financial statements for the year ended on December 31, 2009. Time not extended. 06

03. Non-submission of audited financial statements for the year ended on December 31, 2009.

Referred to Enforcement Department for appropriate action for non-submission of audited financial statements for the year ended on December 31, 2009.

03

04. Clearance for re-appointment of existing auditors for the consecutive period exceeding three years.

Clearance accorded. 19

7

CAPITAL ISSUE Capital Raising: Private Limited Company: During April-June, 2010 the Commission accorded consent to the following private limited companies to raise capital for the amount stated in the table below:

Serial No.

Name of the Company Applied for

Consent Letter issued

on Amount (BDT)

1 Nitol Motors Limited

Ordinary Shares of Tk. 34,37,00,000.00 28.04.2010 34,37,00,000.00

2 Augere Wirless

Broadband Bangladesh Ltd.


3 IDLC Investments Ltd.


4 E C Securities Limited


5 BSRM Iron & Steels Ltd.


6 Energyprima Limited

Right Shares of Tk. 3,00,000.00 05.05.2010 3,00,000.00

7 Eastcompeace

Smart Card (Bangladesh) Ltd.

Ordinary Shares of Tk. 7,83,25,000.00 12.04.2010 7,83,25,000

8 Swadesh

Investment Management Ltd.


9 City Brokerage Limited

Ordinary shares of Tk. 60,00,00,000/- 01.04.2010 60,00,00,000.00

10 Summit

Uttaranchol Power Co. Ltd.

Preference Shares of Tk.

161,49,27,100.00 09.04.2010 161,49,27,100.00

11 Navana Furnithres Limited


12 Navana Batteries Limited

Ordinary Shares of Tk.18,36,02,690.00 17.05.2310 18,36,02,690.00

13 KBC Agro Products (Pvt) Ltd.


14 IIDFC Capital Limited


15 IDLC Securities Limited

Bonus Shares of Tk. 40,00,00,000/- 19.05.2010 40,00,00,000.00

16 Premier Bank Securities Limited


8

17 Multi Securities

and Services Limited


18 North Breeze Crusher Limited

Debenture of Tk. 1,00,00,000.00 16.05.2010 1,00,00,000.00

19 Generation Next Fashions Ltd.


20 Lanka Bangla Investments

Limited


21 KBC Agro Products (Pvt) Ltd.


22 Westmont Power (BD) Ltd.


23 Keya Knit Composite Limited


24 Summit Shipping Ltd.

Bonus Shares of Tk. 7,50,00,000/- and

Ordinary Shares of Tk. 17,50,00,000

Consent letter issued on

31.05.2010 and

24.06.2010

25,00,00,000.00

25 Echotex Limited Ordinary Shares of Tk. 16,52,84,160.00 09.06.2010 16,52,84,160.00

26 Keya Soap Chemicals Limited


27 Orion Laboratories Limited


28 Air Asia STS (Bangladesh

Limited


29 Buildtrade Engineering Ltd.


30 Reedisha Textripe Ltd.


31 Augere Wirless

Broadband Bangladesh Ltd.

Ordinary Shares of Tk 26,00,00,000.00 22.06.2010 26,00,00,000.00

32 RAK Power Pvt Ltd.


33 RAK

Pharmaceuticals Pvt. Ltd.


Total 942,13,43280.00

Public Limited Company: During April-June, 2010 the Commission accorded consent to the following public limited companies to raise capital for the amount stated in the table below:

9

Sl. No.

Name of the Company Applied for Consent letter

issued on Amount (BDT)

1 Unique Hotel & Resorts Ltd.

Ordinary Shares of Tk. 50,00,00,000/- 04.05.2010 50,00,00,000.00

2 MI Cement Factory Ltd.


3 AA Rashayan Shilpa Ltd.

Ordinary Shares of Tk. 950,00,000/- 09.05.2010 95,00,000.00

4 AIBL Capital

Market Services Limited


5 SIBL Securities Limited

Ordinary Shares of Tk. 25,00,00,000/= 28.04.2010 25,00,00,000.00

6 GMG Airlines Limited


7 Central Depository

Bangladesh Limited

Bonus Shares of Tk. 34,60,00,000/- 01.04.2010 34,60,00,000.00

8 Bangladesh Thai Aluminium Limited

Preference Shares to the existing

shareholders of Tk. 75,00,00,000/-

01.04.2010 75,00,00,000.00

9

Credit Rating Agency of

Bangladesh Limited


10 Chemico

Laboratories Limited


11 Trust Bank Investments

Limited


12 Lanka Bangla Securities Limited


13 Deshbandhu Sugar Mills Ltd.

Ordinary Shares ofTk. 50,00,00,000/- 19.04.2010 50,00,00,000.00

14 IDLC Finance Limited

Debenture of Tk. 30,00,00,000/- 31.05.2010 30,00,00,000.00

15 Agni Systems Limited

Convertible Preference Shares of Tk. 20,00,00,000/-

13.05.2010 20,00,00,000.00

10

16 GPH Ispat Limited Ordinary Shares of Tk. 48,78,30,000/- 19.05.2010 48,78,30,000.00

17 Mercantile Bank Securities Limited

Ordinary shares of Tk. 65,00,00,000/- 07.06.2010 65,00,00,000.00

18 Shahjibazar Power Co. Ltd.

Ordinary and bonus shares of Tk.

88,00,00,000/- 13.05.2010 88,00,00,000.00

19 Lanka Bangla Securities Limited


20 Beximco Limited Ordinary Shares of Tk.9,18,74,870/- 06.05.2010 9,18,74,870.00

21 IT Consultants Limited


22 Unique Hotel & Resorts Ltd.


23 Energyprima Limitged

Right Shares of Tk. 3,00,00,000 25.05.2010 3,00,00,000.00

24 Energyprima Limitged


25 Deshbandhu Polymer Limited

Ordinary Shares of Tk. 8,00,00,000 03.06.2010 8,00,00,000.00

26 Keya Cotton Mills Ltd.


27 LSI Industries Ltd. Bonus Shares of Tk. 32,50,00,000/- 30.06.2010 32,50,00,000.00

28 Bangladesh Steel Re-Rolling Mills

Ltd.


29 Summit

Purbanchol Power Co. Ltd.

Preference Shares of Tk. 247,27,02,900 21.06.2010 247,27,02,900.00

30 Dhaka Shanghai Ceramics Limited


31 GMG Airlines Limited


32 Keya Cotton Mills Ltd.


Total 17378304570.00

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Status Report of Right Issue for April-June, 2010

Sl. No.

Name of the Company Date of Approval Number of Shares Total Amount (BDT)

1

Southeast bank Limited 25.05.2010

Approval of rights issue of 1,71,13,186 ordinary shares of Tk. 100/- each at an issue price of Tk. 160/-each (including premium of Tk. 60/-each) totaling Tk. 273,81,09,760.00 at a ratio of 1:2

Tk. 273,81,09,760.00

2

Prime Bank Limited. 04.02.2010

Approval of rights issue of 1,15,52,734.00 ordinary shares of Tk. 100/- each at an issue price of Tk. 300/-each (including premium of Tk. 200/-each) totaling Tk. 346,58,20,200.00 at a ratio of 1:2

Tk. 346,58,20,200.00

3

Maksons Spining Mills Limited 17.06.2010

Approval of rights issue of 10,48,80,000 ordinary shares of Tk. 10/- each at an issue price of Tk. 25/-each (including premium of Tk. 15/-each) totaling Tk. 262,20,00,000.00 at a ratio of 1:2

Tk. 262,20,00,000.00

Total 882,59,29,960.00 Public Offering: Particulars of the issues for which Commission accorded consent for IPO through publication of Prospectus during April-June 2010

Sponsors Equity

(Excluding premium, In Tk.)

Public Equity (Excluding

premium, In Tk.)

Sl. No

Name of the Co

Name of the

Issue Manager

Date of Approval

Face value Per share

Total Capital (In Tk.) (9+1

3)

Local Foreign

Total General

Public

Foreign placement

Local

placement

Total (10+11+12)

Remar

ks

Subscribed amount Ref Col No 10

Date of

Subscriptio

Opens:Closes:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17 1. Malek

SpinninPrime Finance & Investments

15/4/10

10.00 160.00

120.00

- 120.00

40.00 crore

- - 40.00 crore

At a premi

1646.4262

06.06.1010.06.10

12

g Mills Limited

Limited; ICB Capital Management Ltd. Grameen Capital Management Ltd.; Swadesh Investment management Ltd. Mercantile securities Ltd.

crore crore crore um of Tk.

15.00 per

share

crore

2. United Airways (BD) limited

AAA Consultants & Financial Advisers Ltd.

15/4/10

100.00

200.00 crore

100.00 crore

- 100.00 crore

100.00

crore

- - 100.00

crore

At par 846.194 crore

16.05.1020.05.10

3. Beacon pharmaceuticals Ltd.

ICB Capital Management Ltd.; Janata bank ltd.

5/5/10 10.00 220.00 crore

190.00 crore

- 190.00 crore

30.00 crore

- - 30.00 crore

At par 977.342 crore

20.06.1024.06.10

Surveillance Department: Daily Market Surveillance: As part of daily market surveillance, the surveillance officials watch and analyze the trading activities in both the stock exchanges through non trading on-line surveillance system in order to find out irregularities, suspicious trading and market misconducts, if any. At the end of trading, a daily trade report, at the end of week, weekly trade report and at the end of month, monthly trade report are prepared by pointing out market conditions and are submitted to the Chairman, the Members and the Executive Directors of the Commission. Investigation and Enquiry: In order to ensure fair-trading and to maintain confidence of investors in the securities market it is necessary to ensure proper compliance of securities related laws, rules and regulations through inspection and investigation in suspicious and manipulative cases. In this regard, the following stock-brokers/stock-dealers’ activities have been investigated by SEC, Dhaka Stock Exchange, Chittagong Stock Exchange during the referred period:

Nature of Enquiry & Investigation Investigation & Enquiry Against

Inspection & Enquiry By

To investigate the unusual trading in shares of Chittagong Vegetables Oil Industries Ltd., CMC Kamal Textile Mills Ltd., Dhaka Fisheries Ltd., Alpha Tobacco Manufacturing Company Ltd., and Gulf Foods Ltd. during March 01, 2010 to March 31, 2010.

Major involved stock-brokers/stock-dealers of DSE

Dhaka Stock Exchange Limited

13

To enquiry into the certain unusual trading in shares of Chittagong Vegetable Oil Industries Ltd in the stock exchanges.

Major involved stock-brokers/stock-dealers of DSE and CSE

1. .Mr. Mohammad Rezaul Karim, Director, SEC 2. Mr. Mohammad Rakibur Rahman, AD, SEC

To investigate the current status of the factories of listed companies that have been declared “Lay-off” by the board of directors of the respective companies.

_______ Dhaka Stock Exchange Ltd

REGISTRATION

Issuance and Renewal of Stock Dealer /Stock Broker Registration Certificate:

During April – June 2010, the Commission issued 19 (Nineteen) Stock broker/Stock dealer registration certificates in favor of different members of Dhaka Stock Exchange Ltd. and 20 (Twenty) Stock broker/Stock dealer registration certificates in favor of different members of Chittagong Stock Exchange Ltd. under wmwKDwiwUR I G·‡PÄ Kwgkb (÷K wWjvi, ÷K †eªvKvi I Aby‡gvw`Z cÖwZwbwa) wewagvjv, 2000. These are listed below: Dhaka Stock Exchange Limited:

Sl. No.

Name & Address of the Stock dealer/ Stock broker

Category Membership No.

Registration Certificate No. & Issue Date

1 Trustee Securities Ltd Room # 527, DSE Building ,9/E Motijheel C/A Dhaka-1000.

Stock Broker & Stock dealer

DSE # 162 Reg-3.1/DSE-162/2010/413 Date: 28.06..2010 & Reg-3.1/DSE-162/2010/414 Date: 28.06..2010

2 AB Ispahani Securities Ltd. Ispahani Building (2nd Floor), 14-15 Motijheel C/A, Dhaka-1000

Stock Dealer

DSE-01 Reg-3.1/DSE-01/2010/406 Date: 17.05.2010

3 K Securities & Consultant Ltd. Plot # 6/11, Block –B. Lalmatia Dhaka-1207

Stock dealer

DSE-122 Reg-3.1/DSE-122/2010/407 Date: 15.05..2010

4 Dawn Securities Ltd. Room # 311& 312, DSE Building, 9/F Motijheel C/A, Dhaka-1000

Stock dealer DSE-141 Reg-3.1/DSE-141/2010/409 Date: 17.05..2010

14

5 Banco Securities Ltd. Ispahani Building (4th Floor), 14-15 Motijheel C/A, Dhaka-1000

Stock dealer DSE # 63 Reg-3.1/DSE-63/2010/408 Date: 17.05..2010

6 Jamal Ahmed Securities Ltd Room # 403, DSE Building, 9/F Motijheel C/A, Dhaka-1000

Stock dealer DSE # 97 Reg-3.1/DSE-97/2010/410 Date: 17.05.2010

7 Nabiul karim Securities Ltd. Room # 216, Dhaka Stock Exchange Building 9/F Motijheel C/A Dhaka-1000.

Stock broker

DSE-115 Reg-3.1/DSE-115/2010/395 Date: 08.04.2010

8 Ibrahim Securities Ltd. Ibrahim Mansion (4th Floor) 11 Purana Paltan Dhaka-1000

Stock Dealer

DSE-33 Reg-3.1/DSE-33/2010/396 Date: 08.04...2010

9 Hazi Mohammed Ali Securities Ltd. Room # 612, Dhaka Stock Exchange Building 9/F Motijheel C/A Dhaka-1000.

Stock dealer

DSE-165 Reg-3.1/DSE-165/2010/398 Date: 08.04..2010

10 Harun Securities ltd Room # 606, Dhaka Stock Exchange Building 9/F Motijheel C/A Dhaka-1000.


11 Tabarak Securities Ltd., Room # 1003, (10th Floor) 28 Dilkusha C/A Dhaka-1000.

Stock dealer

DSE # 172 Reg-3.1/DSE-172/2010/399 Date: 08.04..2010

12 Nouvelle SecuritiesLtd. Room # 719, DSE Building , 9/F Motijheel C/A Dhaka-1000.


13

E- Securities Ltd. Paramounts Hights(14th Floor) , 65/2/1 Box Vat Road , Purana Paltan Dhaka-1000.


14 Nexus Securities Ltd. 35 Bijay Nagar, Dhaka-1000.


15 Coast to Coast Securities Ltd698/c Khilgaon ,Chawdhuri Para, Dhaka-1219.


15

16 United Enterprise & Co. Ltd, United House ,10 Gulshan Avenue, Gulshan , Dhaka 1212

Stock Broker & Stock dealer

DSE # 138 Reg-3.1/DSE-207/2010/404 Date: 28.04..2010 & Reg-3.1/DSE-207/2010/405 Date: 28.04..2010

17 Md. Fakhrul Islam Securities Ltd. PBL Tower (9th Floor), 17 Gulshan North C/A Dhaka-1212


18 BLI Securities Ltd, Bir Uttam MA Rab Sharak R/A (old-16, Road-2), Dhaka-1205


19 Salta Capital Ltd. 158-160 Madhumita Building Room # 112, Dhaka-1000


Chittagong Stock Exchange Limited:

Sl. No.

Name & Address of the Stock dealer/ Stock broker

Category Membership No.

Registration Certificate No. & Issue Date

1 National Securities & Consultant Ltd. 5 Rajuk Avenue, Motijheel, Dhaka

Stock broker

CSE-57 Reg-3.2/CSE-57/2010/216 Date: 31.05.2010

2 Sylnet Securities Ltd. Alhamra Shoping City (5th Floor) Zindabazar Sylhet

Stock Dealer

CSE-33 Reg-3.2/CSE-33/2010/217 Date: 31.05.2010

3 Ahmed Securities Services Ltd. Elite House, CDA Avenue, Chittagong

Stock Dealer

CSE-70 Reg-3.2/CSE-70/2010/218 Date: 31.05.2010

4 Muntaha Shares & Capital Ltd. C & F Tower (5th Floor), 1222 SK Mujib Road Agrabad Chittagong

Stock Broker & Stock Dealer

CSE-129 Reg-3.2/CSE-129/2010/205 Date: 08.04.2010 & Reg-3.2/CSE-129/2010/225 Date: 23.06.2010

5 Associate Capital Securities Ltd. Kadri Chamber , 37 Agrabad C/A, Chittagong

Stock Dealer

CSE-63 Reg-3.2/CSE-63/2010/202 Date: 04.04.2010

16

6 Northwest Securities Ltd. Jiban Bima Bhaban (4th Floor) 56 Agrabad C/A Chittagong

Stock Dealer

CSE-19 Reg-3.2/CSE-19/2010/203 Date: 04.04.2010

7 Prudential Capital Ltd. Room # 1608, 28 Dilkusha Centre (17th Floor) Dhaka-1000

Stock Dealer

CSE-62 Reg-3.2/CSE-62/2010/204 Date: 05.04.2010

8 Oasis Turner Ltd. House #44, Road # 6, Block –C, Banani, Dhaka-1213

Stock Dealer

CSE-72 Reg-3.2/CSE-72/2010206 Date: 27.04.2010

9 Fareast Securities & Secuities Ltd. Satter Chamber(4th Floor),99 Agrabad C/A, Chittagong

Stock Dealer

CSE-123 Reg-3.2/CSE-123/2010/207 Date: 27.04.2010

10 Vantage Securities Ltd Room # 1006, DSE Building ,9/E Motijheel C/A Dhaka-1000.

Stock Dealer

CSE-115 Reg-3.2/CSE-115/2010/208 Date: 27.04.2010

11 DN Securities Ltd 316 SK Mujib Road, Agrabad , Chittagong

Stock Dealer

CSE-89 Reg-3.2/CSE-89/2010/209 Date: 27.04.2010

12 Century Securities Ltd.Minhaz Complex, 12 Jamal Khan Road, Chittagong

Stock Dealer

CSE-79 Reg-3.2/CSE-79/2010/210 Date: 27.04.2010

13 Alpha Securities Ltd., Progati house (5th Floor) Agrabad , Chittagong

Stock Dealer

CSE-001 Reg-3.2/CSE-001/2010/211 Date: 2704.2010

14 Adams Securities Ltd. Room # 906,Madhumita Building (10rd Floor), 158-160 Motijheel C/A, Dhaka-1000

Stock Dealer

CSE-016 Reg-3.2/CSE-016/2010/212 Date: 27.04.2010

15 TSI Securities Ltd. Arag Chamber, 68 Agrabad C/A , Chittagong



16 Al Arafa Islami Bank Ltd. Peoples Insurance Bhaban(7-10th Floor) 36 Dilkusha C/A, Dhaka-1000



17 Stock and Security linkway ltd.16 Park Road, Room # 1802, Baridhara, dhaka

Stock Dealer

CSE-014 Reg-3.2/CSE-014/2010/219 Date: 02.06.2010

17

18 Kishwar Securities Investment Ltd., Upahar Centre, Plot # 10. SK Mujib Road. Agrabad C/A , Chittagong

Stock Dealer

CSE-47 Reg-3.2/CSE-047/2010/224 Date: 23.06.2010

19 SN Securities Ltd. 304/B (2nd Floor), Mir Arced, SK Mujib oad. Agrabad ,Chittagong.

Stock broker and Stock dealer


20 Reliance Securities & Consultant Ltd. 923/A SK Mujib oad. Agrabad ,Chittagong.

Stock dealer CSE # 59 Reg-3.2/CSE-59/2010/215 Date: 31.05..2010

Moreover, the Commission renewed 127 (one hundred and twenty seven) stock broker/stock dealer registration certificates of Dhaka Stock Exchange Ltd and 45 (forty five) Stock broker/Stock dealer registration certificates of Chittagong Stock Exchange Ltd during April – June 2010.

Branch Opening Permission to the Stock Brokers:

During the said quarter, the Commission approved opening of 77 (seventy seven) new branches of different Stock brokers of Dhaka Stock Exchange Limited. The Commission also approved opening of 27 (twenty seven) new branches of different Stock brokers of Chittagong Stock Exchange Limited. Issuance and Renewal of Authorized Representative Registration Certificates: During the period under review, the Commission issued 396 (three hundred and ninety six) authorized representatives registration certificates of Dhaka Stock Exchange Ltd and 116 (one hundred and sixteen) of Chittagong Stock Exchange Ltd. The Commission also approved 2 (two) duplication and 1(one) renewal of DSE authorized representative’s registration certificates under wmwKDwiwUR I G·‡PÄ Kwgkb (÷K wWjvi, ÷K †eªvKvi I Aby‡gvw`Z cÖwZwbwa) wewagvjv, 2000.

Issuance and Renewal of Depository Participant Registration Certificate:

During the quarter, the Commission issued the following 13 (thirteen) depository participant registration certificates under wWcwRUwi (e¨envwiK) cÖweavbgvjv, 2003 and renewed 102(one hundred and two) depository participant registration certificates.

18

DP NO

Name, Address & Contacts of the DP

Membership

No.

Category Certificate No. & Issue Date

1 Holicity Securities Ltd Sylhet City Centre, Zindabazar, Sylhet

CSE # 93 Full Service

SEC/Reg./CDBL-DP-312 Date: 12.04.2010

2 Fareast Stocks and Bonds. Printers Building (9th Floor), 5 Rajuk Avenue Dhaka-1000

DSE # 226 Full Service


3 ISPI Securities Ltd. Ispahani Bhaban ,Agrabad Chittagong



4 Unique Share Management Ltd., Unique oval,45 Kamal Ataturk Avenue, Banani, Dhaka-1213

DSE # 109 Full Service


5 IIDFC Capital Ltd. WW Tower (9th Floor), Eunoos Centre, 52-53 Dilkusha C/A ,Dhaka-1000

MB Custody SEC/Reg./CDBL-DP-314 Date: 03.05.2010

6 Azim Securities, CDA Bhaban (5th Floor), Shahid Sohrawardi Road, Kotoali ,Chittagong



7 Uttara Exchange& Securities Ltd, Pedrollo Plaza, 5 Jublee Road. Chittagong

CSE # 24- Full Sevice SEC/Reg./CDBL-DP-315 Date: 06.05.2010

8 Hasan Securities Ltd. 115/7-A Distilary Road Dhaka-1204.

DSE # 57 Full Sevice SEC/Reg./CDBL-DP-317 Date: 06.05.2010

9 Galaxy Capital Ltd. 70/1 Inner Circular Road, National Scout Bhaban (5th Floor), Kakrail. Dhaka-1000

CSE # 85 Full Sevice SEC/Reg./CDBL-DP-318 Date: 17.05.2010

10 Raja Securities Ltd1095/B Asadgang, Mohammadi Building, Chittagong


11 Ahmed Securities Services Ltd. Elite House, CDA Avenue, Chittagong


12 Muntaha Shares & Capital Ltd. C & F Tower (5th Floor), 1222 SK Mujib Road Agrabad Chittagong


13 United Enterprise Co. Ltd. Suit # 1201, Senakalyan Bhaban. 195 Motijheel C/A, Dhaka-1000

DSE #207 Full Sevice SEC/Reg./CDBL-DP-323 Date: 17.06.2010

19

Issuance of Registration Certificate for Merchant Banking Operation and Approval of Opening

New Branch Office of Merchant Bank:

The Commission issued 3 (three) registration certificates for merchant banking operation in favor of

subsidiary companies of different banks and financial institutions namely:

1. Prime Bank Investment Ltd. (Old- Prime Bank Ltd.) on 01.06.2010

2. Agrani Equity and Investment Ltd. ( Old-Agrani Bank Ltd.) on 19.05.2010

3. IIDFC Capital Ltd. (Old- South Asia Capital Ltd.) on 26.04.2010

During the quarter, the Commission accorded approval to open 3 (three) new branch offices of BRAC

EPL Investments Limited, 6 (Six) new branch offices of Fidelity Assets and Securities Company Ltd and

1 (one) new branch office of IDLC Finance Limited i.e. total 10 (ten) new branch offices of 3 (three)

Merchant Banks to perform the merchant banking activities under wmwKDwiwUR I G·‡PÄ Kwgkb (gv‡P©›U e¨vsKvi I

†cvU©‡dvwjI g¨v‡bRvi) wewagvjv, 1996.

Issuance of Asset Management Company Registration Certificate:

During the quarter the Commission has approved issuance of 1 (one) Asset Management Company

Registration Certificate in favor of Alliance Capital Asset Management Ltd under the wmwKDwiwUR I G·‡PÄ

Kwgkb (wgDPz qvj dvÛ), wewagvjv, 2001

Issuance of Credit Rating Registration Certificate:

During the quarter the Commission has approved issuance of 2 (two) Credit Rating Registration

Certificates in favor of National Credit Rating Limited and Emerging Credit Rating Ltd under the Credit

Rating Companies Rules 1996.

20

MUTUAL FUND & SPECIAL PURPOSE VEHICLE (MF & SPV) During April-June, 2010, Mutual Fund and SPV Department has performed the following activities:

• Completed the process relating to approval of prospectus and abridged version thereof of First Janata Bank Mutual Fund (Closed-end).

• Completed the process for approval of lotteries and approval for deployment of fund of Phoenix

Finance First Mutual Fund and ICB AMCL 3rd NRB Mutual Fund.

• Completed the process relating to registration of fund of Green Delta Mutual Fund, AIBL First Mutual Fund, Popular life First Mutual Fund and LR GLOBAL Bangladesh Mutual Fund One. PHP First Mutual Fund and Prime finance first Unit Fund(Open-end).

• Completed the process for approval of Trust Deed and Investment Management Agreement of AIBL First Mutual Fund, LR GLOBAL Bangladesh Mutual Fund One, Popular life First Mutual Fund, PHP First Mutual Fund, Prime Finance First Unit Fund (Open-end), Reliance Insurance Mutual Fund, MBL First Mutual Fund and Southeast Bank First Mutual Fund.

• Also completed the process for approval of a Standard Trust Deed for Unit Fund and forwarded the

same to the registered Asset Management Companies and advised them to prepare Trust Deed as per the approved standard.

SUPERVISION AND REGULATION OF MARKETS AND ISSUER COMPANIES (SRMIC)

During April-June 2010, the following companies held AGM. Information on AGM and dividend is shown in the following table: BANKS Sl.No Name Year End Date of AGM % of Dividend

cash stock 1 Al-Arafah Islami Bank Ltd. 31.12.2009 10-Jun-10 0% 30% 2 Bank Asia Ltd. 31.12.2009 23-Jun-10 0% 40% 3 The City Bank Ltd. 31.12.2009 23-May-10 0% 25%

4 IBBL Mudaraba Perpetual Bond+ 31.12.2009 19-May-10 12.35% 5 ICB Islamic Bank Ltd** 31.12.2009 22-Jun-10 0% 0%

21

6 Islami Bank Ltd. 31.12.2009 19-May-10 10% 20% 7 Jamuna Bank Ltd. 31.12.2009 13-Jun-10 0% 37.50% 8 NCCBL 31.12.2009 30-May-10 0% 47% 9 Pubali Bank Ltd. 31.12.2009 6-May-10 5% 30%

10 Shahjalal Islami Bank Ltd. 31.12.2009 9-May-10 0% 25% 11 Social Islami Bank Ltd. 31.12.2009 12-Jun-10 0% 11% 12 Standard Bank Ltd. 31.12.2009 6-May-10 0% 20% 13 Trust Bank Ltd. 31.12.2009 21-Jun-10 0% 20% 14 Uttara Bank Ltd. 31.12.2009 3-Jun-10 0% 50%

NBFI’S

1 Bangladesh Finance and Investment Co. Ltd.

31.12.2009 30-May-10 0% 20%

2 Bangladesh Industrial Fin. Com. 31.12.2009 19-May-10 0% 22.50% 3 Bay Leasing & Investment Ltd. 31.12.2009 15-May-10 0% 50% 4 Fidelity Assets & Securities Com. Ltd. 31.12.2009 16-Jun-10 0% 15% 5 First Lease Finance and Investment Ltd. 31.12.2009 24-May-10 0% 75% 6 IDLC Finance Limited 31.12.2009 19-Apr-10 10% 100%

7 Industrial Promotion & Development com. Of Bd. Ltd

31.12.2009 30-May-10 0% 10%

8 International Leasing and Financial Services Ltd.

31.12.2009 15-Jun-10 0% 75%

9 Islamic Finance & Investment 31.12.2009 25-Apr-10 0% 25%

10 National Housing Finance and Investment Ltd

31.12.2009 10-Jun-10 17.50% 0%

11 People’s Leasing 31.12.2009 17-Jun-10 0% 38.50% 12 Phoenix Finance and Investments Ltd. 31.12.2009 9-Jun-10 0% 30% 13 Premier Leasing & Finance Ltd. 31.12.2009 27-May-10 0% 15% 14 Prime Finance & Invest. 31.12.2009 22-Apr-10 10% 40% 15 Union Capital Ltd. 31.12.2009 19-May-10 0% 30% 16 Uttara Finance 31.12.2009 23-Jun-10 0% 25%

INSURANCE COMPANIES Sl.No. Name Year End Date of AGM % of Dividend

cash stock 1 Asia Pacific General Insurance Ltd. 31.12.2009 15.04.2010 - 10% B 2 United Insurance Ltd. 31.12.2009 22.04.2010 10.00 20%B 3 Peoples Insurance Ltd. 31.12.2009 27.04.2010 - 20%B

4 BGIC Ltd. 31.12.2009 29.06.2010 - 10%B 5 Prime Insurance Ltd. 31.12.2009 03.05.2010 - 20%B 6 Pioneer Insurance Ltd. 31.12.2009 09.05.2010 - 25%B 7 Eastland Insurance Ltd. 31.12.2009 10.05.2010 - 30%B 8 Nitol Insurance Ltd. 31.12.2009 24.06.2010 - 12%B 9 Continental Insurance Ltd. 31.12.2009 26.05.2010 - 10%B

22

10 Karnaphuli Insurance Ltd. 31.12.2009 29.06.2010 - 15%B 11 Provati Insurance Ltd. 31.12.2009 31.05.2010 - - 12 Phoenix Insurance Ltd. 31.12.2009 02.06.2010 - 25%B 13 Standard Insurance Ltd. 31.12.2009 28.06.2010 - 10%B 14 Agrani Insurance Ltd. 31.12.2009 30.06.2010 - 10%B 15 Pragati Insurance Ltd. 31.12.2009 15.06.2010 20.00 10%B 16 Reliance Insurance Ltd. 31.12.2009 12.06.2010 - 30%B 17 Dhaka Insurance Ltd. 31.12.2009 28.06.2010 15.00 - 18 Asia Insurance Ltd. 31.12.2009 17.06.2010 - 10%B 19 City General Insurance Ltd. 31.12.2009 17.06.2010 - 10%B 20 Republic Insurance Ltd. 31.12.2009 28.06.2010 - 10%B 21 Federal Insurance Ltd. 31.12.2009 21.06.2010 - 12%B 22 Central Insurance Ltd. 31.12.2009 22.06.2010 - 15%B 16 Green Delta Insurance Ltd. 31.12.2009 06.05.2010 25.00 -

ENGINEERING SECTOR 1 Singer Bangladesh Ltd. 31.12.2009 28.04.2010 90.00 - 2 Bangladesh Lamps Ltd. 31.12.2009 12.05.2010 35.00 3 BD Thai Ltd. 31.12.2009 29.05.2010 5.00 20%B 4 BSRM Steels Ltd. 31.12.2009 06.06.2010 - 15%B 5 Aziz Pipes Ltd. 31.12.2009 10.06.2010 - - 6 Kay & Que (Bd) Ltd. 31.12.2009 17.06.2010 - 5%B 7 Golden Son Ltd. 31.12.2009 19.06.2010 - 12.5%B 8 Rangpur Foundry Ltd. 31.12.2009 24.06.2010 20.50 - 9 Eastern Cables Ltd. 31.12.2009 28.06.2010 5.00 -

10 Monno Jute StafflersLtd. 31.12.2009 28.06.2010 10.00 - FOOD & ALLIED SECTOR

1 BATBC 31.12.2009 15.04.10 300%

2 Mona Food Industry Ltd. 30.06.2009 27.05.10 - 3 Modern Industries Limited 31.12.2009 17.06.10 - 4 National Tea Company 31.12.2009 24.06.10 20%

TEXTILE SECTOR 1 Monno Fabrics Limited. 31.12.2009 27.06.10 - 2 R. N. Spinning Mills Ltd. 31.12.2009 20.06.10 - 10 3 Sonargoan Textile Ltd. 31.12.2009 19.06.10 10 4 Safco Spinning Mills Limited 31.12.2009 24.06.10 - 5 Square Textiles Ltd. 31.12.2009 16.06.10 16 15

SERVICE AND REAL ESTATE SECTOR

1 Summit Alliance Port Limited. 31.12.2009 28.04.10 20% 10%B 2 Ocean Containers Limited. 31.12.2009 28.04.10 10% 10%B

MISCELLANEOUS SECTOR 1 Aramit Limited 31.12.2009 26.06.10 15 50 2 Berger Paints Bangladesh Limited. 31.12.2009 17.06.10 150 3 BSC 30.06.2009 30.04.10 - 4 GQ Ball Pen Industries Ltd. 31.12.2009 28.05.10 35% 5 Himadri Limited 31.12.2009 28.06.10 12 6 Jago Corporation Limited. 31.12.2009 24.06.10 -

23

7 Sino Bangla Industries Ltd. 31.10.2009 11.05.10 5% FUEL & POWER SECTOR

1 Summit Power Ltd. 31.12.2009 29.04.2010 - 25% B 2 Jamuna Oil Company Ltd. 30.06.2009 08.05.2010 40.00 - 3 BOC Bangladesh Ltd. 31.12.2009 13.05.2010 177.00 -

4 Khulna Power Company Ltd. 31.12.2009 24.06.2010 10.00 15% B 5 Meghna Petrolium Ltd. 31.12.2009 26.06.2010 40.00 5% B

PHARMACEUTICALS & CHEMICALS SECTOR

1 Glaxo Smith Kline 31.12.2009 22.04.2010 160.00 - 2 Renata Ltd. 31.12.2009 29.05.2010 60.00 25% B 3 Beximco Synthetics Ltd. 31.12.2009 15.06.2010 7.50 7.5% B

4 Beximco Pharma Ltd. 31.12.2009 15.06.2010 - 15% B 5 ACI Formulations 31.12.2009 16.06.2010 25.00 - 6 ACI Ltd. 31.12.2009 16.06.2010 105.00 - 7 Reckitt Benkiser (BD) Ltd. 31.12.2009 17.06.2010 750.00 - 8 IBN Sina 31.12.2009 26.06.2010 7.50 20% B 9 Ambee Pharma Ltd. 31.12.2009 29.06.2010 30.00 -

10 Therapeutics Ltd. 31.12.2009 30.06.2010 Nil - 11 Petro Synthetics Ltd. 31.12.2009 23.06.2010 - -

PAPER & PRINTING SECTOR 1 Paper Processing & Packaging Ltd. 31.12.2009 24.06.2010 - - CEMENT SECTOR

1 Confidence Cement Ltd. 31.12.2009 20.04.2010 10.00 20% B 2 Padma Cement Ltd. 31.12.2009 24.04.2010 Nil - 3 Heidelberge Cement 31.12.2009 03.06.2010 38.00 - 4 Meghna Cement Ltd. 31.12.2009 20.06.2010 35.00 - 5 Lafarge Surma Cement Ltd. 31.12.2009 24.06.2010 Nil - 6 Aramit Cement Ltd. 31.12.2009 26.06.2010 12.00 -

CERAMIC SECTOR 1 Shinepukur Ceramics Ltd. 31.12.2009 15.06.2010 - 15% B

IT SECTOR 1 Information Services Network Ltd. 31.12.2009 21.06.2010 - 10% B 2 Intech Online Ltd. 31.12.2009 29.06.2010 - 10% B

TANNERY SECTOR 1 Apex Adelchi Footwear Ltd. 31.12.2009 10.05.2010 35.00 - 2 Bata Shoe 31.12.2009 24.06.2010 220.00 -

TELE COMMUNICATION SECTOR 1 Grameenphone Ltd. 31.12.2009 08.06.2010 60.00 -

24

COMPLAINT AGAINST LISTED COMPANIES:

Nature of Complaint No. of Companies

Under Process

Referred for Enforcement

Action Resolved

Non payment or delay in payment of dividend 8 8 Non payment of debenture installment Regarding transfer of shares 5 1 4 Non receipt of letter of rights share offering 3 3 Non receipt of annual report 2 2 Refund warrant 16 13 3 Non demat of shares Miscellaneous 12 7 1 4

Total 46 21 1 24 Supervision and Regulation of Intermediaries (SRI)

The functions of SRI Department are supervision of activities and performance of stock-dealers/stock brokers, depository participants, security custodian banks, merchant bankers, security lenders and borrowers and other market intermediaries. The regular inspection of stock brokers/dealers and DP’s are carried out on monthly basis by this department. During April-June 2010, the following complaints were lodged with the department and necessary actions taken against them are as below: Complaints against Stock Broker/Stock Dealer/Depository participant:

Nature of Complaints

No. of Complaints Received

Under Process

Referred for Enforcement

Action

Referred to DSE/CSE

Resolved

Lost of shares - - - - Unauthorized debit of share

1 - - 1

Non-transfer of share

1 - - - 1

Non-payment of sales proceeds

- - - -

Financial loss due to non-transfer of share

-

-

-

-

Delay in settlement

- - - -

Non-receipt of share

- - - -

Corruptions of Broker/Dealer

- - - -

Others 3 - - 1 2 Total 5 - - 2 3

25

Inspection of Stock Broker/Stock Dealer/Depository Participants/ Merchant Banks:

Nature of Inspection

Broker/Dealer/DP/ Merchant Bank under

Inspection

Send to DSE/CSE for regularization

Referred to Enforcement

for action

Remarks

Special Inspection following a complaint in May, 2010

Galaxy Capital Limited

(former Tasnim Securities

Limited)

(CSE Member no.085)

-

-

The complaint has been settled

Monthly regular Inspection for the Month of April 2010

Dayton Holdings Limited

(DSE Member NO. 101)

-

-

No action was required


Tobarrak Securities Ltd.

(DSE Member no. 172)

√

-

-


British Bengal Securities

Limited

(CSE Membership No. 008)

-

-



ISPI Securities Ltd.


-

-


Monthly regular Inspection for the Month of May 2010

S & H Equities Limited

(DSE Member no- 2)

-

-



Arab Bangladesh Bank

Foundation

(DSE Member no- 201 & CSE Member no- 101)

-

-

Report under

process


ICB Securities Trading Co.

Ltd.

(CSE Membership No. 71 & DSE Membership No. 129)

-

-

Report under

process


Associated Capital

Securities Ltd.


√

-

-

Monthly regular Inspection of Merchant Bank for the Month of June 2010

Grameen Capital

Management Ltd.

-

-

Report under

process

Monthly regular Inspection for the Month

D.N. Securities Ltd. Report under

26

of June 2010 (CSE Membership no. 89) process

Nature of Inspection

Broker/Dealer/DP/

Merchant Bank

under Inspection

Send to DSE/CSE for regularization

Referred to Enforcement

for action

Remarks

Monthly regular Inspection for the Month of June 2010

3A & Company Ltd.


-

-

Report under

process


Samin Securities Ltd.

(DSE Member no- 83)

-

-

Report under

process


Peoples Equities Ltd.

(DSE Member no- 176)

-

-

Report under

process

CENTRAL DEPOSITORY During April-June 2010 quarter, the following companies joined the certral depository system under

Central Depository Bangladesh Limited (CDBL):

Sl. No. Name of the Company Joining Date

01 IFIC Bank 1st Mutual Fund 01.04.2010

02 Phoenix First Mutual Fund 09.05.2010

03 Hakkani Pulp Industries Limited 29.04.2010

04 Khulna Power Limited (Direct Listing) 18.04.2010

05 RAK Ceramics (Bangladesh) Limited 13.06.2010

06 Prime Textile Spininig Mills Limited 29.06.2010

07 Bangladesh Welding Electrodes Limited 31.05.2010

08 Rahima Food Corporation Limited 29.06.2010

09 Bangladesh Welding Electrodes Limited 21.05.2010

10 ICB AMCL 3rd NRB Mutual Fund 24.05.2010

11 United Commercial Bank Limited 13.06.2010

27

SEC ENFORCEMENT ACTIONS During April-June 2010 the following enforcement actions against Issuer Companies, Chartered Accountants, Stock-Brokers/Stock-Dealers, Issue Manager and Others were taken by the Commission for non-compliance of the securities related laws: Against Issuer Company: Violation No. of

Issuer Companies

Nature of Action

Failure to submit the audited financial statements 1 Penalty Failure to comply with securities related laws regarding audited financial statements

11 Penalty

Failure to submit the half-yearly financial statements 2 Warning Failure to comply with securities related laws 10 Warning Non-compliance of Directive/Notification/Order 5 Penalty Failure to submit the audited financial statements 1 Warning Non-compliance of Directive/Notification/Order 1 Warning Failure to submit the half-yearly financial statements 6 Penalty Against Chartered Accountant Firm: Violation No. of Chartered

Accountant Firm: Nature of Action

Failure to comply with securities related laws regarding audited financial statements of the issuers.

1 Penalty

Against Stock Broker/ Stock Dealer: Violation No. of Stock

Broker/Stock-Dealer Nature of Action

Non-compliance with securities related laws 11 Warning Non-compliance with securities related laws 1 Penalty

28

Against Issue Manager: Violation No. of Issue

Manager Nature of Action

Non-compliance with SEC Consent Letter No. SEC/CI/RPO-04/2009-253

1 Penalty

Against Others: Violation No. Nature of Action Non-Compliance of SEC Notification No.SEC/SRMID/2000-953/313Admin -06 dated 25.03.2001 Regarding Sale Declaration of director Shares of Progressive Life Insurance Co. Ltd.

1 Warning

LAW A total of 293 cases filed by or against SEC are pending in different courts. Name of the courts are given below along with number of pending cases with each:

Sl. No. Name of the Court Number of Cases Appellate Division 08 01. Supreme Court of

Bangladesh High Court Division 105 02 District Judge Court, Dhaka. 01 03 Metropolitan Session Judge Court, Dhaka 06 04. 1st Asst. Metropolitan Session Judge Court, Dhaka 01 05. 4 th Joint Dist. Judge Court, Dhaka. 01 06. 5th Joint. Dist. Judge Court, Dhaka. 08 07. 4th Assistant Judge court, Dhaka 01 08. 9th Assistant Judge court(Savar), Dhaka 01 09. Chief Metropolitan Magistrate Court, Dhaka 09 10. General Certificate Court, Dhaka. 153

Total 293

Out of total 15 share scam cases of 1996, 3 cases are now pending before the Appellate Division, 8 cases before the High Court Division of Bangladesh Supreme Court and balance 4 cases are pending before the Metropolitan Session Judge Court, Dhaka.

08 (eight) Certificate cases were filed against the directors of relevant 06 companies in order to recover the penalty imposed by the Commission for violation of securities laws during the period April-June, 2010 under Public Demands Recovery Act, 1913.

29

MIS MIS Department is responsible to assist different departments of SEC through development of automation in their activities, development of capital market monitoring system based on computerized data analysis, and informing all about securities laws and other related matters through website. At present all officers of SEC use computers in their daily activities. All computers are connected through local area network (LAN). Different modules of integrated Securities and Exchange Commission Automated System (SECAS) have been developed at SEC for use of its different departments. Officers of SEC can use broadband internet connection from their workstation through connected LAN. SEC’s website (www.secbd.org) is enriched with various information like securities laws, IPO prospectus, eligible securities, depository participants, enforcement actions, reports etc, which are updated regularly and many users visit the website. MIS department works on development, modification and maintenance of the mentioned systems. During April-June 2010 – Important Web Uploads and Website Visits: Works Number IPO Prospectus/ Right offer document Upload 4 Enforcement Actions Upload 114 Other Order/Notification/Directive etc Upload 26 Eligible Securities/DP List etc Update 25 Quarterly Report Upload 1 Annual Report Upload 1 Proposed Draft Rule Upload for Comments - No. of Website Visitors(As Per Web Counter) 36,000(approx)

30

RESEARCH AND DEVELOPMENT (R&D) Research and Development Department of the Commission conducts investors’ education program for the general investors, impart capital market related seminar for various government and non-government organizations, prepares and publishes Commission’s various publications regularly, furnishes various reports and information to the government and other institutions including Ministry of Finance and different regulatory authorities, and makes paper clipping from most of the daily newspapers (20 dailies ) and circulate it to the Commission and executives. The department also deals the training program of the authorized representatives jointly with the stock exchanges. During April-June 2010 Research and Development Department has carried out regular activities as mentioned in the table below: S/N Name of Work Quantity 1 Training Program for General

Investors (Two-days program)

8(Eight) programs 285 participants

2 Training for Authorized Representatives (Two-days program)

DSE- 5 programs 290 participants CSE- 2 programs 121 participants Total- 07 programs Total- 411 participants

3 Annual Report 2008-2009 (English) Publication

1

4 Quarterly Report 1 5 Parikrama 1 6 Monthly Work Plan to MOF 3 7 Monthly Progress Report to MOF 3 8 Quarterly Manpower Report to MOF 1 Quarterly,

31

Capital Market Regulatory Reforms and Compliance (CMRRC) During April-June 2010, the following amendments/order/directives/notifications related to capital market have been issued:

Sl. No.

Ref. and date Subject Classification

1 SEC/CMRRCD/ 2001-16/33/Admin/03-42 Dated: April 06,2010

Amendment to the Securities and Exchange Commission (Over-the-Counter) Rules, 2001.

Notification

2 SEC/CMRRCD/ 2006-161/34 Dated: April 11,,2010

Regarding submission of certificate of membership of BAPLC to the CSE by the listed companies.

Amendment to the listing

regulations of the CSE

3 SEC/CMRRCD/2009-193/part-

II/35/Admin Dated May 04,2010

Regarding Record date, Commencement of Book closure period and AGM

Notification

4 SEC/CMRRCD/2006-159/36/Admin Dated: May 05 ,2010

Regarding conversion of private limited company into public limited company

Notification

5 SEC/CMRRCD/2006-157/38/Admin Dated: May 31 ,2010

Regarding market lot and face value of shares of the listed companies.

Notification

6 SEC/CMRRCD/2006/201/37/Admin Dated: May 10 ,2010

Amendment to the wmwKDwiwUR I G·‡PÄ Kwgkb (wgDPz qvj dvÛ) wewagvjv, 2001

Notification

7 No. SEC/CMRRCD/2009-193/39 May 31 ,2010

The paper securities under “B” category shall be transferred to “Z” category effective from July 01,2010.No paper securities shall be transacted in the stock exchanges from October

Directive

32

01,2010. 8 GmBwm/wmGgAviAviwmwW/wgm/230/2004-

41/ ZvwiLt Ryb 07, 2010Bs

To follow the rules, direction by the merchant bankers and portfolio manaers.

Directive

9 SEC/CMRRCD/2001-43/42 Dated: June 15, 2010

Not to privide loan facility by the stock brokers to purchase equity securities wiyh price-earning –ratio above 40.

Directive

10 SEC/CMRRCD/2001-43/43 Dated: June 15, 2010

Not to privide loan facility by the merchant bankers including the portfolio managers to purchase equity securities with price-earing ratio above 40..

Directive

11 SEC/CMRRCD/2001-116/44/Admin/03-42 Dated: June 16, 2010

Amendments to the Securities and Exchange Commission (over-the-Counter) Rules, 2001.

Notification

12 GmBwm/wmGgAviAviwmwW/wgm/2009-193/45/cÖkvmb/03-47 ZvwiLt Ryb 30, 2010Bs

Yearly fee Tk. 500/-for Beneficiary Owner (BO) account maitenance..

Notification

Notification Dated, the 6th April 2010 No. SEC/CMRRCD/2001-16/33/Admin………….. In exercise of the powers conferred by section 33 of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Securities and Exchange Commission makes, after prior circulation, the following amendments to the Securities and Exchange Commission (Over-the-Counter) Rules, 2001, namely:- 1. Sub-rule (2) of rule 1 shall be replaced by the following new sub-rule (2), namely:- “(2) These Rules shall be applicable for the unlisted and delisted or listed securities deemed to have been delisted by the order of Securities and Exchange Commission and shall come into force with immediate effect,”. 2. Condition (a) of sub-rule (2) of rule 3 shall be replaced by the following new condition (a), namely:- “(a) the paid-up capital of the companies shall be at least taka 5 (five) crore;” 3. Sub-rule (3) of rule 3 shall be replaced by the following new sub-rule (3), namely:- “(3) the Exchange shall also provide OTC facilities to any issuer of security as directed by the Commission.” 4. In rule 5, after sub-rule (2), a new sub-rule (3) shall be inserted, namely:-

33

“(3) (a) The selling stock dealer/stock broker shall deposit the securities with the Exchange at the time of placing the sale order mentioning details of such securities, including the selling price, duration of the order, commission and charges separately. (b) The buying stock dealer/stock broker shall make full payment to the Exchange through bank cheque/pay order/demand draft including the commission or charges at the time of placing buy order of the securities. The buy order shall include the details of such securities, buying price and duration of the order. 5. Rule 6 shall be amended as follows:- (a) The title of the rule 6 shall be replaced by the new title, “Payment and delivery by the Exchange in case of paper securities”. (b) In sub-rule (2) of rule 6, after the words, “pay order/demand draft”, the words and sign “/cheque/cash deposit with the designated bank account of the Exchange” shall be inserted. (c) In sub-rule (3) of rule 6, after the words, “pay order/demand draft”, the words and sign “/cheque/cash deposit with the designated bank account of the Exchange” shall be inserted. 6. After rule 6, a new rule 6A shall be inserted, namely:- “6A. Payment and Delivery by the Exchange in case of dematerialized securities. (1) The selling stock-dealer/stock broker shall send the securities at OTC Exchange DP through selling DP clearing account from the selling customer’s BO account, in advance, against issuance of an official receipt to the said seller mentioning details of such security, including the selling price, commission, or charges separately, for subsequent payment to the selling stock-dealer/stock broker after sale of the concerned securities by the Exchange. (2) The buying stock-dealer/stock broker shall make full payment, including the commission or charges, to the Exchange through bank pay order/demand draft/cheque /cash deposit with the designated bank account of the Exchange on the day of buy of securities at OTC. (3) The Exchange shall deliver the concerned securities to the buying stock-dealer/stock broker’s clearing account on the working day following the day of crediting the amount of the bank pay order/demand draft/cheque/cash in the Exchange’s bank account maintained for the purpose. (4) The buying stock-dealer/stock broker shall, within one working day of taking delivery of the concerned securities from the Exchange, deliver the securities to the buyer’s BO account under intimation to the Exchange. (5) The Exchange shall make payment of the due amount to the selling stock-dealer/stock broker by cheque on the first working day following the date of transfer of shares from the buying stock-dealer/stock broker’s clearing account to the BO account of the buyer.”. By order of the Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman.

34

No. SEC/CMRRCD/2006-161/34 April 11, 2010

Directive

Whereas, the Securities and Exchange Commission in the interest of investors and capital market, dems it appropriate to to incorporate further provision in the listing regulations of the Chittagong Stock Exchange Limited in respect of submission a certificate of membership of Bangladesh Association of Publicly Listed Companies(BAPLC) to the Exchange by the listed companies ; Now, therefore, the Commission in exercise of power conferred by sub-section (4)of section 34 of the Securities and Exchange Ordinance ,1969 (XVII of 1969), the Securities and Exchange Commission hereby directs the Chittagong Exchange Limited to insert a sub-regulation (3) after sub-regulation (2) in the regulation 20 of The Listing Regulations of The Chittagong Exchange Limited in the following manner namely; “(3) All listed companies are required to submit to the Exchange a certificate of membership Bangladesh Association of Publicly Listed Companies(BAPLC), which hasd been made compulsory by the Ministry of Commerce as per Office Order No. MC/OBA-6/A-2/99/216 dated August 15, 2005 and published in the Bangladesg Gazette dated August 18, 2005. A renewed certificate shall be submitted to the Exchange every year along with the Annual Report.” By order of the Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman. NOTIFICATION May 04, 2010 No. SEC/CMRRCD/2009-193/part-II/35/Admin/03-43: Whereas, the Securities and Exchange Commission deems it fit that the consent already accorded by the Commission, or to be accorded by it in future, to the issue of capital in Bangladesh, or to the public offer of securities for sale, should be subject to certain further conditions in the interest of investors and the capital market; Now, therefore, in exercise of the power conferred by section 2CC of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Securities and Exchange Commission hereby imposes the following further conditions to the consent already accorded by it, or to be accorded by it in future, to the issue of capital in Bangladesh, or to the public offer of securities for sale, namely:- a) The record date or commencement of book closure period of the listed security issuers shall be as per requirements prescribed in the listing regulations of the stock exchanges. b) Annual General Meeting (AGM) shall be held by the listed securities issuers within 45 (forty-five) working days from the record date or commencement of

35

book closure date, as the case may be. This Notification shall supersede the previous Notification No. SEC/CMRRCD/2008- 183/Admin/03-36 dated October 05, 2009 and shall have immediate effect. By order of the Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman.

NOTIFICATION May 05, 2010 No. SEC/CMRRCD/2006-159/36/Admin/03-44: Whereas, the Securities and Exchange Commission (hereinafter referred to as “the Commission”) deems it fit that the consent already accorded by the Commission, or deemed to have been accorded by it, or to be accorded by it in future, to the issue of capital, should be subject to certain further conditions in the interest of investors and the capital market; Now, therefore, in exercise of the power conferred by section 2CC of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Securities and Exchange Commission hereby imposes the following further conditions to the consent to the issue of capital already accorded by it, or deemed to have been accorded by it, or to be accorded by it in future, namely:- 1. A private limited company shall, complying due legal process, convert itself into a public limited company in any of the following cases: (a) Within six months from the date its existing paid up capital and the further capital it intends to raise exceeds, in total, taka forty crore; or (b) Within twelve months from the date of publication of the notification in the official gazette, in case its existing paid up capital has already exceeded, in total, taka forty crore. 2. A public limited company, including the said converted public limited company, whose paid up capital exceeds taka fifty crore shall, complying due legal process, apply to the Commission for making an issue of capital through public offering to the extent prescribed by the Commission from time to time: (a) Within one year from the date of its paid up capital exceeds taka fifty crore, or from the date of publication of this notification in the official gazette, whichever comes later, if it has already been in commercial operation for three years or more; or (b) Within three years of commencement of its commercial operation, if it has not yet commenced its commercial operation. [Note: The date recorded with the taxation authority about commencement of commercial operation shall be considered the date for this purpose.] This Notification shall supersede the previous Notification No. SEC/CMRRCD/2006- 159/Admin-03/23 dated February 08, 2006. By order of the Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman.

36

bs-GmBwm/wmGgAviAviwmwW/2010-201/37 ZvwiLt ‡g 10, 2010 Bs cÖÁvcb welqt ZvwjKvfy³ †Kv¤úvwbmg~‡ni †kqv‡ii AwfwnZ g~j¨ I gv‡K©U jU cwieZ©b cÖm‡½| Dchy©³ wel‡q RvwiK…Z Kwgk‡bi weÁwß bs-GmBwm/wmGgAviAviwmwW/2010-201/23, ZvwiL gvP© 01, 2010Bs ms‡kvab c~e©K GZØviv Rvbv‡bv hv‡”Q †h, ÷K G·‡P‡Ä ZvwjKvfy³ †Kv¤úvwbmg~‡ni †kqv‡ii AwfwnZ g~j¨ 10/- (`k) UvKvq cwieZ©‡bi †¶‡Î †h mKj B”QzK †Kv¤úvwb cÖ‡qvRbxq mKj AvbyôvwbKZv m¤úbœ Ki‡Z cvi‡e Zv‡ì †kqv‡ii AwfwnZ g~j¨ cybt wbav©i‡Yi wbwgË miKvi m`q m¤§wZ Ávcb K‡i‡Qb| AZGe, miKv‡ii D³ wm×v‡š—i ‡cÖw¶‡Z B”QzK ZvwjKvfy³ †Kv¤úvwbmg~n G e¨cv‡i cÖ‡qvRbxq mKj AvbyôvwbKZv m¤úbœ c~e©K Kwgk‡b Av‡e`b Ki‡j Kwgkb Zv‡ì Av‡e`b we‡ePbvi wbwgË h_vh_ eë ’v MÖnb Ki‡e| wmwKDwiwUR I G·‡PÄ Kwgk‡bi c‡¶, (wicb Kzgvi †èbv_) cwiPvjK (wmGgAviAviwm) weZibt 1| cÖavb wbev©nx Kg©KZ©v, XvKv ÷K G·‡PÄ wjwg‡UW 2| cÖavb wbev©nx Kg©KZ©v, PÆMÖvg ÷K G·‡PÄ wjwg‡UW 3| ‡cÖwm‡W›U, evsjv‡`k G‡mvwm‡qkb Ae cvewjKwj wj‡÷W †Kv¤úvwbR 4| eë ’vcbv cwiPvjK, †m›Uªvj wWcwRUwi evsjv‡`k wjwg‡UW AeMwZi Rb¨ Abywjwct mKj wefvMxq cÖavb, GmBwm ‡Pqvig¨vb g‡nv`‡qi wcI, GmBwm No. SEC/CMRRCD/2009-193/ May 31, 2010 DIRECTIVE In exercise of the power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Securities and Exchange Commission hereby directs the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd. that; - The paper securities under “B” category shall not be traded in the stock exchanges from July 01, 2010 and these securities should be transferred to “Z” category on the same day. No paper security shall be traded in the stock exchanges from October 01, 2010. By order of the Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman.

37

cÖÁvcb ZvwiL, 31 ‡g, 2010 bs GmBwm/wmGgAviAviwmwW/2006-157/38/cÖkvmb/------- wmwKDwiwUR I G·‡PÄ Kwgkb, wmwKDwiwUR I G·‡PÄ Kwgkb AvBb, 1993 (1993 m‡bi 15bs AvBb) Gi aviv 24Gi Dc-aviv (1) G cª Ë ¶gZve‡j wmwKDwiwUR I G·‡PÄ Kwgkb, c~e© cÖKv‡ki ci, wmwKDwiwUR I G·‡PÄ Kwgkb (wgDPz¨qvj dvÛ) wewagvjv, 2001 G wb‡gœv³ ms‡kvab Kwij, h_vt- DcwiD³ wewagvjvq,- 1| wewa 2, Dc-wewa (1) Gi `dv (P) wb‡¤œv³fv‡e cÖwZ¯’vwcZ nB‡e, h_vt- Ò(P) ÒD‡`¨v³vÓ A_© †Kvb e¨vsK, Avw_©K cÖwZôvb, BÝy¨‡iÝ †Kv¤úvwb ev mswewae× ms ’v, †h GKKfv‡e ev Ab¨ †Kvb e¨vsK, Avw_©K cÖwZôvb, BÝy¨‡iÝ †Kv¤úvbx, mswewae× ms¯’v, ¯^xK…Z Z_v †iwRóvW© Uªv÷ dvÛ, †cbkb dvÛ, cÖwf‡W›U dvÛ ev mycvi Gby‡qkb dvÛ (Super Annuation Fund) Gi mwnZ wgwjZfv‡e †Kvb wgDPz qvj dvÛ MVb K‡i;Ó| 2| wewa 28 Gi, Dc-wewa (2) Gi ci bZzb Dc-wewa (3) ms‡hvwRZ nB‡e, h_vt- Ò(3) jK-Bb (Lock- in)|- m¤ú` eë¯’vc‡Ki D‡`¨v³v‡ì †kqvi Gi Dci wbeÜb mb` cÖvwßi ZvwiL nB‡Z 2 (`yB) eQi ch©š— jK-Bb (Lock- in) ejer _vwK‡e|Ó| 3| wewa 50K wb‡gœv³fv‡e ms‡kvwaZ nB‡e, h_vt- Ò50K Gi Aaxb we`¨gvb wewawU Dc-wewa (1) wnmv‡e MY¨ nB‡e Ges AZtci wb‡gœv³ bZzb Dc-wewa (2) mshy³ nB‡et (2) wgDPz qvj dv‡Ûi cÖvB‡fU †cøm‡g‡›Ui †¶‡Î, mswk_ó dv‡Ûi D‡`¨v³v b‡n Ggb, - (A) GKK e¨w³i AbyK~‡j m‡ev©”P 10 (`k) j¶ UvKv; (Av) AZvwjKvfy³ †Kv¤úvwb ev mswewae× ms¯’vi AbyK~‡j (ïaygvÎ wbR¯^ †cvU©‡dvwjIi ‡¶‡Î) m‡ev©”P 1 (GK) †KvwU UvKv; (B) ZvwjKvfy³ †Kv¤úvwb I wgDPz qvj dv‡Ûi AbyK~‡j (ïaygvÎ wbR¯^ †cvU©‡dvwjIi Rb¨, Z‡e wgDPz¨qvj dv‡Ûi ‡¶‡Î msiw¶Z †KvUv cÖ‡hvR¨ n‡e bv) m‡ev©”P 5 (cvuP) ‡KvwU UvKv; Ges (A) ¯xK…Z Z_v †iwRóvW© Uªv÷ dvÛ, †cbkb dvÛ, cÖwf‡W›U dvÛ I mycvi Gby‡qkb dvÛ (Super Annuation Fund) Gi AbyK~‡j (ïaygvÎ wbR¯^ †cvU©‡dvwjIi Rb¨) m‡ev©”P 5(cvuP) †KvwU UvKvi †ekx eivÏ †Ìqv hvB‡e bv| GB msµvšÍ P~ovš— ZvwjKv cÖm‡c±v‡m AšÍf~©³ Kwi‡Z nB‡e|Ó| wmwKDwiwUR I G·‡PÄ Kwgkb Gi Av‡`kµ‡g ‡gvt wRqvDj nK †Lv›`Kvi †Pqvig¨b bs- GmBwm/wmGgAviAviwmwW/wgm&/230/2004/41 Ryb 07, 2010

wb‡`©k wmwKDwiwUR I G·‡PÄ Kwgkb (gv‡P©›U e¨vsKvi I †cvU©‡dvwjI g¨v‡bRvi) wewagvjv, 1996 ‡gvZv‡eK wba©vwiZ Kvh©µg cwiPvjbvi Rb¨ gv‡P©›U e¨vsKvi‡ì‡K wmwKDwiwUR I G·‡PÄ Kwgkb cÖ‡qvRbxq wbeÜb mb` cÖ`vb Kwiqv‡Q| D³ Kvh©µ‡gi g‡a¨ ÷K †eªvKv‡iR Kvh©µg cwiPvjbvi Rb¨ Z_v D³ Lv‡Z g‡°‡ji wbKU nB‡Z wb‡R‡ì Rb¨ †eªvKv‡iR Kwgkb ev †Kvb cÖKv†i †eªvKv‡iR eve` †Kvb A_© Av`v‡qi GLwZqvi gv‡P©›U e¨vsKvi‡ì bvB| wKš‘ wewfbœ mg‡q gv‡P©›U e¨vsKvi KZ©„K `vwLjK…Z Z_¨ DcvË nB‡Z Kwgkb D‡Ø‡Mi mv‡_ jÿ¨ Kwiqv‡Q †h,

38

÷K G·‡P‡Ä g‡°j‡ì Rb¨ †kqvi µq-weµ†qi wbwgË wb‡qvwRZ mb`cÖvß ÷K †eªvKvi‡ì wbKU cÖ‡`q †eªvKv‡iR Kwgk‡bi GKwU Ask A‰bwZK I wewa ewnf~©Zfv‡e gv‡P©›U e¨vsKviiv Askx`vwi‡Z¡i wfwË‡Z (By sharing) wb‡R‡ì Rb¨ Av`vq K†i, hvnv D³ wewagvjvi wewa 29(3) I 35(2) Gi cwicwš’| A_©vr, gv‡P©›U e¨vsKviiv †eªvKvi‡ì wbKU cÖ‡`q cÖK…Z A‡_©i cwigv‡Yi PvB‡Z †ekx A_© GB Lv‡Z g‡°j‡ì wbKU nB‡Z ‡h †Kvbfv‡e Av`vqc~e©K wbR Avq wnmv‡e msiÿb Kwi‡Z cv‡i bv| cyuwRevRvi Ges wewb‡qvMKvix‡ì mvwe©K ^v‡_© cyuwRevRv‡ii wewfbœ bxwZgvjv I wewa weavb h_vh_fv‡e cwicvj‡bi Rb¨ mswkøó mKj‡K GZØviv wb‡ ©k cÖ vb Kiv hvB‡Z‡Q| wmwKDwiwUR I G·‡PÄ Kwgk‡bi Av‡`kµ‡g, i“Kmvbv †PŠayix wbev©nx cwiPvjK

No. SEC/CMRRCD/2001-43/42 June 15, 2010 DIRECTIVE In exercise of the power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Securities and Exchange Commission hereby directs the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd. that; - The stock exchanges shall not entertain the equity securities with price-earning ratio of above 40 (forty) as “marginable securities” under clause (d) of sub-rule (12) of rule 3 of the Margin Rules, 1999 and the stock brokers shall not provide loan facilities to their clients to purchase the said securities until further order. This Directive shall supersede the previous Directive No. SEC/CMRRCD/2001-43/14 dated February 01, 2010. This shall have effect from June 20, 2010. By order of the Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman. NOTIFICATION June 16, 2010 No. SEC/CMRRCD/2001-16/44/Admin/--------- In exercise of power conferred by section 33 of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Securities and Exchange Commission makes, after prior circulation, the following further amendment to the Securities and Exchange Commission (Over-the-Counter) Rules, 2001, namely:- In the aforesaid Rules, clause (h) under sub-rule(1) of rule 2, shall be replaced by the following new clause (h), namely;- “(h) “unlisted security” means a security issued or to be issued by a company, but not listed with any stock exchange under the listing regulations.”. By Order of the Securities and Exchange Commission Md. Ziaul Haque Khondker

39

Chairman. cÖÁvcb Ryb 30, 2010Bs bs-GmBwm/wmGgAviAviwmwW/2009-193/45/cÖkvmb/------wWcwRUwi AvBb, 1999 (1999 m‡bi 6 bs AvBb) Gi aviv 17-Gi Dcaviv (2)-G cÖ Ë ÿgZve‡j wmwKDwiwUR I G·‡PÄ Kwgkb, miKv‡ii mwnZ civgk©µ‡g, wWcwRUwi (e¨envwiK) cÖweavbgvjv, 2003 G wb‡¤§v³ ms‡kvabx Kwij, h_vt- Ó1| Zdwmj 4 (wWcwRUwi cÖ Ë †mevi) wd Gi µwgK bs 3, Gi Kjvg 3 (wd nvi) wb¤œwjwLZ fv‡e cÖwZ ’vwcZ nB‡e, h_vt- µwgK bs wd Gi LvZ wd Gi nvi by bZg wd

(UvKvq) wd wbav©i‡Yi wfwË

cwi‡kvaKvix KLb cÖ‡`q

3/ evwl©K wnmve i¶Y wd

wWcwRUwi (weI) wnmve cÖwZ evrmwiK 500/-UvKv hvnvi g‡a¨ wWcwRUwi (weI) wnmve cÖwZ 250/- UvKv nv‡i wWcwRUwi Kwgkb‡K cwi‡kva Kwi‡e | D³ 250/- UvKvi ga¨ nB‡Z 200/- UvKv Kwgkb miKvwi †KvlvMv‡i Rgv Kwi‡e |

- - AskMÖnYKvix /wnmve aviK /wgwjZ (Omnibus) wnmv‡ei cÖ‡Z¨K wewb‡qvMKvix

evwl©K AwMÖg (evwl©K wnmve i¶Y wd) cÖ v‡b e¨_©Zvi Rb¨ wWcwRUwi AskMÖnYKvix ev wWcwRUwi †h me wnmv‡e wmwKDwiwU bvB Zvnv eÜ Kwiqv w`‡e |hw` †Kvb wnmve G wmwKDwiwU _v‡K Z‡e wWcwRUwi AskMÖnYKvix ev wWcwRUwi avh©K„Z wd (AwZwi³ †Kvb wd cÖ‡hvR¨ nB‡j Zvnv mn ) cwi‡kva bv Kiv ch©š— wnmve mvm‡cÛ (suspend) Kwiqv ivwL‡e |

2/ D³ wd nvi RyjvB 01,2010 Bs nB‡Z Kvh©Ki nB‡e | Ó wmwKDwiwUR I G·‡PÄ Kwgk‡bi Av‡`kµ‡g,- ‡gvt wRqvDj nK †Lv›`Kvi †Pqvig¨vb

40

MARKET PERFORMANCE Dhaka Stock Exchange: At the end of April-June, 2010 period, total issued capital of all listed securities including treasury bond with the Dhaka Stock Exchange Ltd was Tk.607, 263.00 million, compared to Tk.566, 632.00 million as on 31st March, 2010 registering an increase of 7.17 %. The market capitalization of all listed securities of Dhaka Stock Exchange Ltd stood at Tk. 2,670,996.00 million on 30 June, 2010 which was Tk. 1,862,988.50 million on 31st March 2010. The total turnover in Dhaka Stock Exchange was 2919 million securities amounting to Tk. 965,275.18 million during April-June, 2010. Chittagong Stock Exchange: At the end of April-June, 2010 period, total issued capital of all listed securities with the Chittagong Stock Exchange Ltd was Tk. 201,115.56 million, compared to Tk. 176,593.93 million as on 31st March, 2010 registering an increase of 13.88 %. The market capitalization of all listed securities of Chittagong Stock Exchange Ltd stood at Tk. 2,534,393.27 million during the quarter ended on 30 June 2010, which was Tk. 1,862,988.50 million on 31st March, 2010. The total turnover in Chittagong Stock Exchange was 321.47 million securities amounting to Tk. 68,825.59 million during April-June, 2010

Dhaka Stock Exchange Ltd (DSE) DSE High Level Officials Called on NBR Chairman: A delegation of DSE led by its newly elected president Mr. Md.Shakil Rizvi made a courtesy call with NBR Chairman Mr. Nasir Uddin Ahmed on 07 April, 2010. The delegation discussed many issues related to capital market. Orientation Program on Book-Building Method at DSE: On June 06, 2010 an orientation programe on Book-Building Method was organized by the DSE Training Academy. Mr. Md. Shakil Rizvi, newly elected president of DSE, presided over the programe. Mr. ATM Tariquzzaman, Executive Director, SEC was attended the programe and delivered speech on Book-Building Method in the orientation program. Others: • A delegation consisting of four members from Royal Securities Exchange of Bhutan visited the DSE

on 10-16 May, 2010. • A two-day long Trainig Programe on Compliance in Corporate Governance was organized by DSE

Training Academy on 4-5 April, 2010. Training on Automated Trading System (Mock Trade) was also organised by DSE Training Academy on 13-20 April, 2010.

• In order to create awareness about the capital market among the general investors, DSE conducted monthly Investors’ Awareness Program on 7-20 April, 2010.

41

Chittagong Stock Exchange Ltd (CSE)

Internet Trading Service (ITS) developed by the CSE: The Chittagong Stock Exchange Limited had opened a new page in its history by developing Internet Trading Service (ITS) which would accelerate the investment of Non-resident Bangladesh (NRBs). As part of this innovation, the CSE conducted a glorius road show on 22 May, 2010 from Sylhet which is known as a pivotal zone from the economic point of view. CSE president Mr. Fakruddin Ali Ahmed urged on providing ITS with more convenient way to both the local investors and NRBs following the programe. He also added that the new system would encourage the NRBs to invest more in the capital market. The CEO of the burse, Professor Dr. Mohammed Abdullah Mamun placed his own views at his speech that the internet trading system would be more user-friedly to the investors to forcast investment decision .In addition, he expressed his optimism to make the system popular to the participants of capital market and also stated that this jounney of CSE would act as facilitator in the economic development of the country. More than 250 investors had registered themselves for using the ITS in CSE and the Exchange had accorded its concent to 21 brokerage houses for using ITS. MKM Mohiuddin, Former CSE president, Nasiruddin Ahmed Chowdhury, immediate past President, vice president Al Maruf Khan & Tareq kamal, CSE directors as well as senior officials of the bourse attended the programe. Training Program Held in CSE:

CSE conducted its month long 10th comprehensive training course on capital market on 20th June, 2010 at its conference room. Professor Dr. Mohammed Abdulla Mamun, CEO, CSE formally inaugurated the training program. Professor M.A.Mamun had expressed that the CSE was working continuously to increase learning-based investors in order to build a sound and potential capital market in Bangladesh. On 17-18 May, 2010 a two day long training program for authorized representatives of the members of CSE held at CSE Dhaka Office, where SEC Member Mr. Muhammad Yasin Ali inaugurated the program. Mr. Yasin Ali urged on acquiring proper knowledge on the rules and regulations related to capital market. He also asked the authorized representatives to work with utmost integrity. SEC and CSE senior officials conducted the training sessions.

42

DSE & CSE SCENARIO Capital Market: As of 30 June, 2010 the total issued capital of all listed securities including treasury bonds of Dhaka Stock

Exchange was Tk.607,263.00 million (US$ 8,755.00 million) which was Tk. 2,275,558.00 million (US$ 32,855.00 million) on 31st March, 2010. In Chittagong Stock Exchange the total issued capital on 30 June, 2010 was Tk.201, 115.56 million (US$ 2,873.08 million) which was Tk.176, 593.93 million (US$ 2,522.77 million) on 31st March 2010.

Stock Market Operation: During April-June, 2010 the total turnover in Dhaka Stock Exchange was 2919 million securities while the total amount traded on Dhaka Stock Exchange during the same period was Tk. 965,275.18 million In the same period, the total turnover in Chittagong Stock Exchange was 321.47 million securities while the total amount traded on Chittagong Stock Exchange during the same period was Tk. 68,825.59 million. Market Capitalization: Total market capitalization of all securities including treasury bonds listed on the Dhaka Stock Exchange was Tk. 2,670,996.00 million (US$ 38,509.00 million) as on 30 June, 2010 compared to Tk. 2,275,558.00 million (US$32,855.00 million) as on 31st March, 2010. In the Chittagong Stock Exchange, total market capitalization of all listed securities was Tk. 2,534,393.27

million (US$ 36,205.62 million) as on 30 June, 2010 compared to Tk. 1,862,988.50 million (US$ 26,614.12 million) as on 31st March 2010.

Share Price Index: DSE all share price index stood at 5111.63 on 30 June, 2010 compared to 4573.81 on 31st March 2010. The CSE all share price index stood at 18116.0515 on 30 June, 2010 while it was 16193.99 on 31st March 2010. The index bases are 100 and 1000 for DSE and CSE respectively. (1 US$ =Tk.69.36 For April-June, 2010 quarter)

43

Bangladesh Capital Market Summary As on 30 June, 2010 Indicators Dhaka Stock

Exchange Chittagong Stock

Exchange

No. of companies 243 204 No. of mutual funds 26 26

No. of debentures 8 2 No. of treasury bonds 171 - No. of corporate bonds 2 - Total No. of Listed Securities 450 232 Figures in million No. of shares of all listed companies 6509 6,730.54 No. of certificates of all listed mutual funds 1225 1,225.28 No. of debentures of all listed debentures 0.41 4.34 No. of all listed govt. T-bonds 3.93 - No. of all listed corporate bonds 4.34 - Total No. of Tradable Securities 7743 7,960.16

Figures in million Issued capital of all companies TK.

US$ 196,208.00 2,829.00

184,214.21 2,631.63

Issued capital of all mutual funds TK. US$

12,566.00 181.00

12,565.50 179.50

Issued debentures TK. US$

140.00 2.00

4,335.85 61.94

Total issued capital TK. US$

607,263.00 8,755.00

210,115.56 2,873.08

Figures in million Total Market Capitalization TK. US$

2,670,996.00 38,509.00

2,534,393.27 36,205.62

All Share Price Index 5111.63 18116.0515

44

DSE OPERATIONAL STATISTICS April-June 2010

Turnover of Securities in Million

(No.)

Traded Amount in Million

Trading Month

All Share Price Index

Market Capitalization

in Million

No. of

Trading Days Monthly Daily

Average Monthly Daily

Average April 4,641.54 2,630,452 20 701 35 191,303.18 9,565.16 May 5,030.05 2,557,474 21 1014 48 386,238.36 18,392.30 June 5,111.63 2,700,745 22 1204 55 387,733.65 17,624.26 Total 63 2919 46 965,275.18 15,321.83

*Index and Market Capitalization of the last trading day of the months have been considered as relevant figures of respective months.

2630

2557

2700

245025002550260026502700

April May June

Market Capitalization of DSE

Taka in Billion

45

Turnover of Securities (Value)

387386

191

050

100150200250300350400450

April May June

Taka in Billion

CSE OPERATIONAL STATISTICS April-June 2010

Turnover of Securities in Million (No.)

Traded Amount in Million

Trading Month

All Share Price Index

Market Capitalization

in Million

No. of

Trading Days

Monthly Daily Average

Monthly Daily Average

April 16427.0659 1,963,241.39 20 87.19 4.36 15,012.76 750.64 May 17740.647

8 2,124,227.59 21 111.83 5.33 26,423.87 1,258.28

June 18116.0515 2,241,767.82 22 122.45 5.57 27,388.96 1,244.95 Total 63 321.47 5.10 68,825.59 1,092.47 *Index and Market Capitalization of the last trading day of the months have been considered as relevant figures of respective months.

46

Taka in Billion Turnover of Securities (value) Taka in Billion

2726

15

05

1015202530

April May June

1963 2124 2241

0

500

1000

1500

2000

April May June

Market Capitalization of CSE

qr april-june final

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